Questions: Question 13 5 pts All the following are important functions of prices except: Prices guarantee that everyone consumes similar amounts of all goods. Prices lead the quantity producers make to match the quantity consumers demand. Prices can ration goods and resources without resorting to other methods, such as queues (waiting in line).. Prices pull resources towards some industries and away from others.

The answer is: Prices guarantee that everyone consumes similar amounts of all goods.

Explanation for each option:

1. Prices guarantee that everyone consumes similar amounts of all goods.

   • This statement is incorrect. Prices do not ensure that everyone consumes similar amounts of all goods. Instead, prices reflect the willingness and ability of consumers to pay for goods and services, which can vary widely among individuals. Therefore, consumption levels differ based on individual preferences, incomes, and other factors.

2. Prices lead the quantity producers make to match the quantity consumers demand.

   • This statement is correct. Prices play a crucial role in balancing supply and demand. When prices are set correctly, they signal producers to adjust their output to meet consumer demand, thereby helping to achieve market equilibrium.

3. Prices can ration goods and resources without resorting to other methods, such as queues (waiting in line).

   • This statement is correct. Prices serve as a rationing mechanism by allocating goods and resources to those who are willing and able to pay for them. This helps avoid non-price rationing methods like queues, which can be inefficient and time-consuming.

4. Prices pull resources towards some industries and away from others.

   • This statement is correct. Prices signal where resources are most needed and most profitable. High prices in a particular industry attract resources (such as labor and capital) to that industry, while low prices may push resources away to more profitable uses. This dynamic helps allocate resources efficiently across the economy.